guide to trial run on proposed amendments to new enhanced dispatch arrangement · 2018. 1. 8. ·...

23 September 2016

Guide to Trial Run

on

Proposed Amendments

to

New Enhanced Dispatch Arrangement

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TABLE OF CONTENTS

Section ..................................................................................................................................... Page

1. New Enhanced Dispatch Arrangement (NEDA) ............................................................. 32. Scheduling and Dispatch of Generation ........................................................................ 43. Fuel Management .......................................................................................................... 44. Purpose of the Trial Run................................................................................................ 55. Categories of NEDA Participants ................................................................................... 66. The Registration Process ................................................................................................ 67. Market Participant Interface (MPI) ................................................................................ 78. Publication of Information by the Single Buyer ............................................................. 89. Summary of Guidelines on Bidding................................................................................ 910. Bidding into NEDA and Trial Run.................................................................................... 911. Validation ..................................................................................................................... 1012. Modifications to Availability ........................................................................................ 1113. Scheduling and Dispatch .............................................................................................. 1114. Default Bid.................................................................................................................... 1215. Monthly Cap................................................................................................................. 1216. System Marginal Price.................................................................................................. 1317. Settlement.................................................................................................................... 1418. Set off ........................................................................................................................... 1519. Failure to Meet Dispatch by Generator ....................................................................... 1620. Non-Dispatch by GSO................................................................................................... 16

Appendix A Bidding and dispatch schedule................................................................................ 17

Appendix B Key information published by the single buyer ....................................................... 18

Appendix C Settlement formula .................................................................................................. 19

Appendix D Registration Process................................................................................................ 23

Attachment Summary Notes on Proposed Bidding, Scheduling, Dispatch and Settlement

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PART I

INTRODUCTION

1. NEW ENHANCED DISPATCH ARRANGEMENT (NEDA)

1.1 The Single Buyer has proposed amendments to the NEDA Rules, among others, on the categories ofparticipants of NEDA ("the “NEDA Participants”) and the bidding, scheduling and dispatch of generationwhich are described in more detail in the following sections. A trial run has been proposed on theproposed bidding process (the “Trial Run”). This document is to provide a guide to the NEDAParticipants for the Trial Run (the “Guide”). Any person who requires further information about theSingle Buyer market and NEDA may refer to the NEDA Rules, the Single Buyer Rules, the MalaysianGrid Code and the Malaysian Distribution Code for more details.

1.2 As provided in the New Enhanced Dispatch Arrangement Rules (“NEDA Rules”), the New EnhancedDispatch Arrangement (“NEDA”) will enhance competition and cost efficiency of the Single Buyer marketwith the following objectives :

enhance cost efficiency in generation through short-run competition;

enable energy-efficient options, particularly the use of efficient technology, such as cogeneration,to participate in the electricity market;

provide opportunity for non-PPA/SLA generators, such as co-generators , renewable energygenerators, franchise utilities with generation facilities, Part PPA/SLA generators (has the meaninggiven in clause 5.1), expired PPA/SLA generators and new build generation facilities who managetheir own fuel requirements to operate as Merchant Generators (has the meaning given in clause5.1) to supply and sell energy to the Single Buyer to enhance their business options bymaximizing the use of existing facilities in a cost-efficient manner for the benefit of the electricitysupply industry and the consumer.

1.3 The NEDA Rules is supplementary to the Single Buyer Rules and should be read in conjunction with theSingle Buyer Rules. The NEDA Rules, together with the Single Buyer Rules, the Malaysian Grid Code andthe Malaysian Distribution Code, will ensure equitable, fair, coordinated and cost efficient operation ofthe Single Buyer market and the NEDA market.

1.5 Unless the context otherwise requires, words and phrases used in the NEDA Rules and in this Guide shallhave the same meaning as defined in the Single Buyer Rules, the Malaysian Grid Code and theMalaysian Distribution Code, and where relevant, the PPA/SLA.

1.6 It is recognised that some Generators have existing commercial agreements with the Grid Owner, theNetwork Operator, the Nominated Coal Supplier, the Nominated Gas Supplier or other parties. Nothingcontained in the NEDA Rules, including the proposed amendments, is intended to modify the parties’rights and obligations under these agreements. In the event of any conflict, the existing commercialagreements take precedence only to the extent that it does not affect the security and safety of the GridSystem and the Distribution System or seek to impose any liability on the Single Buyer, Grid SystemOperator and the Distributor in the discharge of their obligations under the Single Buyer Rules, the NEDARules, the Malaysian Grid Code and the Malaysian Distribution Code in accordance with the termsthereof.

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PART II

PRINCIPLES OF NEDA

2. SCHEDULING AND DISPATCH OF GENERATION

2.1 Under NEDA, the current cost-based bidding system is complemented by introducing an optional price-based bidding by which a NEDA Participant may offer bids in accordance and subject to the NEDA Rules( the “Bid”). This will enhance competition in generation dispatch and result in more competitive energyprices.

2.2 Scheduling and dispatch under NEDA is similar to existing operations but incorporates Bids made byNEDA Participants in accordance with NEDA Rules and co-optimises PPA/SLA Generators and MerchantGenerators at the same time.

2.3 If dispatched, the PPA/SLA Generator shall be paid based on the lower of the VOR and Heat Ratesspecified in the PPA/SLA or any optionally offered VOR and/or Heat Rate provided pursuant to the NEDARules and any such approved amendments. All settlement of PPA/SLA Generators shall be under thearrangements, and subject to the rights and obligations, specified in the relevant PPA/SLA. The optionaloffered VOR and/or Heat Rate may only be of a value less than the VOR and Heat Rate specified in thePPA or SLA.

2.3 A Generator may participate in more than one capacity (for example, as a PPA/SLA Generator and as aPart PPA/SLA Generator). Where that is the case, they shall (except to the extent approved by theEnergy Commission otherwise) comply with all obligations imposed on them severally in each capacity.

2.4 There shall be no violation of contract with existing PPAs/SLAs as, once a PPA/SLA is registered pursuantto the NEDA Rules, the PPA/SLA Generator may choose whether to participate and submit Bids underNEDA.

3. FUEL MANAGEMENT

3.1 An expired PPA/SLA Generators whose PPA/SLA with the Grid Owner( means TNB/SB, unless mentionedotherwise) has expired and who wishes to continue to operate its generation facilities for supplyingelectricity solely to the Grid Owner (the “Expired PPA/SLA Generator”), except an expired PPA/SLAGenerator under clause 3.3, and all existing PPA/SLA Generators shall be eligible for the power sectorgas arrangement.

3.2 All Merchant Generators shall manage their own fuel requirements.

3.3 An expired PPA/SLA Generator may choose to be a Merchant Generator if it wishes to manage its ownfuel requirements.

3.4 An expired PPA/SLA Generator shall obtain approval of Energy Commission and agreement fromPetronas if it wishes to be eligible for power sector gas prior to registration as NEDA Participant.

3.5 An expired PPA/SLA Generator shall specify whether it will be using power sector gas or on own fuelarrangement on registration as NEDA Participant and shall amend its registration under the NEDA Rulesin order to switch from using power sector gas to managing its own fuel requirements.

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PART III

TRIAL RUN ON THE PROPOSED AMENDMENTS TO NEDA RULES

4. PURPOSE OF THE TRIAL RUN

4.1 The purpose of the NEDA Trial Run is to seek feedbacks and suggestions from the NEDA Participants onthe proposed bidding arrangement (bidding, scheduling , dispatch and settlement), to allow the NEDAParticipants to prepare the necessaries and to familiarise with the new arrangements before thebidding goes-live. Energy Commission will review the proposed amendments taking into considerationthe feedbacks from the NEDA Participants and the relevant parties during the Trial Run.

4.2 The Trial Run will be conducted for a period of 6 months from 01 October 2016 to 31 March 2017

4.3 The Energy Commission will designate a date for the bidding to go-live (the “Go-Live Date” ) afterreviewing the proposed amendments taking into consideration the feedbacks from the NEDAParticipants during the Trial Run.

4.4 During the Trial Run period, there will be two (2) parallel work streams :

4.4.1 Stream 1 - Current Practice: Physical operations and settlement will continue to follow existingprocesses and rules;

4.4.2 Stream 2 – NEDA Trial Run: Generators will submit bids and receive dispatch instructions butwill not follow them in reality. This will have no impact on the physical operations andsettlement.

4.5 Prior to the Go-Live Date, any operation of NEDA based on the proposed bidding arrangement duringthe Trial Run shall not give rise to legally binding rights or obligations relating to dispatch and settlementpursuant to the NEDA Rules.

4.6 For the purpose of NEDA Trial Run, there will be no cash transaction for settlement purposes betweenNEDA Participants and the Single Buyer or TNB Distribution relating to the bidding by the NEDAParticipants, except as provided for under the PPA/SLA. There will be mock transaction on paper only.

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PART IV

NEDA PARTICIPANTS AND REGISTRATION

5. CATEGORIES OF NEDA PARTICIPANTS

5.1 The proposed new categories of the NEDA Participants are as follows:

5.1.1 Generators on Power Sector Fuel

This category of NEDA Participants consists of :

(a) PPA/SLA Generators;

(b) Expired PPA/SLA Generators supplying power solely to the Grid Owner and with theirfuel requirements under the power sector gas supply arrangement.

This category of Generators will be eligible for gas supply under the power sector gas supplyarrangement.

5.1.2 Merchant Generators

Merchant Generators consist of any Generator without a PPA/SLA with the Grid Owner andwho manages its own fuel requirements. The Merchant Generators consist of the followingcategories: :

(a) Large Merchant Generators

This category of Merchant Generators consists of co-generation plants, Part PPA/SLAGenerators, expired PPA/SLA Generators on own fuel arrangements, franchise utilities withgeneration facilities and new build generation facilities (without a PPA with the Grid Owner)with export capacity of not less than 30MW; where a Part PPA/SLA Generator means aPPA/SLA Generator that has export capacity of at least 30MW more than the capacitycontracted under the PPA/SLA and which has registered such additional capacity as a PartPPA/SLA Generator.

(b) Price Takers

This category Generators includes co-generation plants, franchise utilities with generationfacilities, expired PPA/SLA renewable plants and new build generation facilities (without aPPA/SLA with the Grid Owner) with export capacity of less than 30MW but not less than100kW.

6. THE REGISTRATION PROCESS

6.1 To participate in NEDA and the NEDA Trial Run, a NEDA Participant shall:

6.1.1 possess appropriate generation licences issued by the Energy Commission; and

6.1.2 apply to register with the Energy Commission as NEDA Participants in accordance with theRegistration Process set out in Appendix D (the “Registration”).

6.3 On receiving the confirmation of the Registration from the Energy Commission, the Single Buyer and theNEDA Participant shall execute an appropriate NEDA Agreement. The NEDA Participant shall provide tothe Single Buyer an estimated date on which it will be ready to participate in NEDA (the ” EstimatedParticipation Date” ) and the Single Buyer shall issue a notice confirming the date on which the NEDAParticipant may participate in Bidding under NEDA (the “Firm Participation Date”).

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6.2 Each NEDA Participant shall keep the information provided in the Registration Process ( the “RegistrationData” ) relating to it and any of its generation facilities connected and supply electricity to the GridSystem or Distribution System (hereinafter referred to as the “Generating Facility” ) under review toensure that the Registration Data is accurate and complete.

6.3 Where a NEDA Participant wishes to or is required to amend its Registration Data ( the “RegistrationAmendment” ) in whole or in part , it shall submit a notice ( the “Registration Amendment Notice” ) tothe Energy Commission with copy to the Single Buyer.

6.4 A Registration Amendment Notice shall contain:

6..4.1 details of the NEDA Participant’s existing Registration Data; and

6.4.2 details of the NEDA Participant’s proposed Registration Data.

6.5 Within three (3) Months of receipt of a Registration Amendment Notice, the Energy Commission shalleither:

6.5.1 refuse the Registration Amendment and provide the NEDA Participant with an explanation ofwhy such Registration Amendment is not accepted; or

6.5.2 approve the Registration Amendment and send the NEDA Participant a confirmation on theamendment to the Registration ( the “Registration Amendment Confirmation”).

6.6 Any party who applies for Registration as a NEDA Participant (the “Applicant”) shall be responsible for itsown costs and expenses incurred in relation to the registration process and participation in the Trial Run.

MARKET PARTICIPANT INTERFACE AND PROVISION OF INFORMATION

7. MARKET PARTICIPANT INTERFACE (MPI)

7.1 The Single Buyer will provide a software portal (“Market Participant Interface” or “MPI”) and makeavailable a virtual location on the World Wide Web for the MPI that is accessible to the NEDAParticipants to interface with NEDA.

7.2 The Single Buyer will ensure that the MPI:

7.2.1 is accessible by all NEDA Parties on the World Wide Web;

7.2.2 presents data and information clearly;

7.2.3 is updated regularly;

7.2.4 is adequately resourced, responsive and stable; and

7.2.5 utilises access security with respect to each NEDA participant.

7.3 The Single Buyer will, in addition to any other matters specified in the Single Buyer Rules and the NEDARules and publish and keep updated the following information on the MPI

7.3.1 Registration forms;

7.3.2 a list of all NEDA Participants and their capacity within NEDA;

7.3.3 the key information in Appendix B (the “ Key Information”) required by NEDA Participants toprepare their Bid.

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7.4 The Single Buyer shall provide adequate documentation and reasonable training for NEDA Participantsregarding the use of the MPI.

7.5 Each NEDA Participant shall install or have available hardware, equipment and information technologysystems that allow it to participate in and use the MPI and shall bear its own costs and expenses in sodoing.

8. PUBLICATION OF INFORMATION BY THE SINGLE BUYER

8.1 The Single Buyer shall publish on the MPI each Key Information Item in Appendix B in accordance withthe provisions of that Appendix (the “Key Information Item”).

8.2 The Single Buyer may publish any additional material or information on the MPI if it reasonably believesit is expedient and necessary to do so for the proper and efficient operation of NEDA and the Trial Run.

8.3 Where there is a technical error or defect in the MPI which prevents the Single Buyer from publishing theKey Information or any Key Information Item at the times specified in Appendix B, then the Single Buyershall use reasonable endeavours to identify an alternative physical or virtual location for the publishingof the Key Information or any Key Information Item.

8.4 If there is any delay in the publishing of the Key Information or Key Information Item at the timesspecified in Appendix B, the Single Buyer shall notify the Energy Commission and the NEDA Participantsof the delay, which notification shall include at a minimum the reason for the delay.

8.5 In the event of any errors in the information provided by the Single Buyer on the MPI, the Single Buyershall be entitled to correct such information and shall use reasonable endeavours to notify the EnergyCommission and the NEDA Participants, via the MPI, of such corrections. NEDA Participants shall notifythe Energy Commission and the Single Buyer of any manifest errors they identity as soon as reasonablypracticable.

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PART V

BIDDING, SCHEDULING AND DISPATCH

9. SUMMARY OF GUIDELINES ON BIDDING

9.1 Detailed guidelines on bidding by NEDA Participants are provided below. In summary:

9.1.1 PPA/SLA Generators and Expired PPA/SLA Generators may submit Bids on reduced Heat Rateand/or VOR for each Bidding Period, subject to:

(a) in the case of PPA/SLA Generators, a cap being the values specified in the applicablePPA/SLA and in the format specified in the PPA/SLA. Only one VOR value shall bespecified for each Bidding Period; and

(b) in the case of Expired PPA/SLA Generators, the Heat Rate and VOR caps set out in theMonthly Cap applicable at the relevant time. Bids for Heat Rate can specify up to ten(10) points, each point decreasing with increased output, separated by a minimum of10MW and not be less than the Minimum Stable Load, and shall specify one VORvalue for each Bidding Period;

9.1.2 Large Merchant Generators may submit Bids with up to ten (10) Price Quantity Pairs for eachBidding Period, each Bid increment separated by a minimum of 10MW and not be less than theMinimum Stable Load and with prices increasing as the quantity increases; and

9.1.3 Price Takers are not entitled to submit any Bids into NEDA and the Trial Run.

10. BIDDING INTO NEDA AND TRIAL RUN

10.1 A Trading Day (D day) is a period from 00.00 hour to 23.59 hour in which a NEDA Participant shallmeet its Delivery Obligation, which is the obligation to deliver energy in Half-Hour Period in accordancewith its successful Bid/PPA/SLA, whichever relevant, and the dispatch instructions issue by the GridSystem Operator . The Bidding Window for each Trading Day shall be ( in the usual course) be asfollows :

Dispatch on Bidding Window opens on Gate Closure on

Monday from 00.00hours

Thursday at 10.00 hours Friday at 9.59hours

Tuesday from 00.00hours

Friday at 10.00 hours Monday at 9.59hours

Wednesday from 00.00hours

Monday at 10.00 hours Tuesday at 9.59hours

Thursday from 00.00hours

Tuesday at 10.00 hours Wednesday at9.59 hours

Friday from 00.00 hours Wednesday at 10.00 hours Thursday at 9.59hours

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Saturday from 00.00hours


Sunday from 00.00hours


10.2 A Price Taker shall submit the planned generation of its Generating Facility connected to the GridSystem or Distribution System for a Trading Day based on forecast and prudent utility practice ( the“Planned Generation Schedule”) to the Single Buyer by 2:00pm on the Working Day preceding theTrading Day (D-1 Day) via the MPI.

10.3 Bids will be limited to the following two Bidding Periods in each Trading Day:

10.3.1 Off Peak: 00.00 hours to 07.59 hours and 22.00 hours to 23.59 hours; and

10.3.2 Peak: 08.00 hours to 21.59 hours.

10.4 NEDA Participants who are subject to Central Dispatch may submit Bids (the “Bidding NEDAParticipants” ) during the Bidding Window in respect of each Bidding Period of the Trading Day asfollows:

10.4.1 PPA/SLA Generators shall provide a Heat Rate and/or VOR, which shall be lower than the HeatRate and/or VOR set out in the relevant PPA/SLA;

10.4.2 Expired PPA/SLA Generators shall provide a Heat Rate and/or VOR; and

10.4.3 Large Merchant Generators shall provide Price Quantity Pairs.

10.5 Bidding NEDA Participants may provide segments of capacity from its Generating Facility at differentprices for each Bidding Period provided that each Bid must be for a minimum capacity of 10MW andmust not be less than the Minimum Stable Load.

10.6 Bidding NEDA Participants shall submit their Bids to the Single Buyer by Gate Closure via the MPI.

10.7 Bidding NEDA Participants may update their Bids via the MPI during the Bidding Window up to GateClosure. There shall be no amendments to the prices included in the Bids submitted after Gate Closure.

10.8 Where a Bidding NEDA Participant has confirmed it is Available prior to Gate Closure but does notprovide a Bid in accordance with this section 10, the Default Bid for that Bidding NEDA Participant shallbe used to prepare the Day Ahead Dispatch Schedule, for dispatch by the Grid System Operator and forSettlement where dispatched.

10.9 The Single Buyer shall update the MPI to reflect Bids received from Bidding NEDA Participants.

11. VALIDATION

11.1 The Single Buyer shall review Bids to confirm whether, for each Half-Hour Period, Bids comply with therequirements of the NEDA Rules and any additional validation criteria specified by the Single Buyer fromtime to time.

11.2 The Single Buyer may reject any Bid, in whole or in part, where the Bid:

11.2.1 does not comply with the requirements of the NEDA Rules (including, for the avoidance ofdoubt, any guidance issued alongside the NEDA Rules); or

11.2.2 would in its view be likely to involve the Single Buyer being in breach of:

(a) any duties under legislation or its licence;

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(b) the Malaysian Grid Code;

(c) the Malaysian Distribution Code; or

(c) any PPA or SLA.

11.3 The Single Buyer shall inform the affected Bidding NEDA Participant via the MPI where a Bid has beenrejected and the reason it was rejected. A rejected Bid shall not be considered for the purposes of theLeast Cost Dispatch Methodology (a methodology for developing the Dispatch Schedules such that thelowest cost marginal Generating Facility is forecast to be dispatched first to meet demand followed bythe next lowest cost marginal Generating Facility until all demand is met).

12. MODIFICATIONS TO AVAILABILITY

12.1 A NEDA Participant may modify its Delivery Obligation for a Trading Day by notice to the Single Buyer inaccordance with the MPI before Gate Closure for that Trading Day.

12.2 After Gate Closure, a NEDA Participant shall modify the Availability of a Generating Facility downwards orupwards (provided that the maximum Availability shall be limited to the Availability included in its Bid)via the MPI:

12.2.1 one (1) hour prior to the relevant Half-Hour Period of the relevant Delivery Obligation; or

12.2.2 where it is not possible to comply with clause 12.2.1 above, as soon as reasonably practicableprior to the relevant Half-Hour Period of the relevant Delivery Obligation,

and any failure to modify a Generating Facility’s Availability in accordance with this section 12 shall besubject to the provisions of section 19.

12.3 Any other Bid information may only be modified with the express consent of the Single Buyer.

12.4 Where after Gate Closure a NEDA Participant notifies a reduction or an increase in the Availability of aGenerating Facility in respect of any Half-Hour Period of the relevant Trading Day, Settlement shall be onthe basis of the actual capacity dispatched by the Grid System Operator.

13. SCHEDULING AND DISPATCH

13.1 The Single Buyer shall schedule the NEDA Participants based on a Least Cost Dispatch SchedulingMethodology such that the lowest marginal cost Generating Facility is forecast to be dispatched first tomeet demand followed by the next lowest marginal cost Generating Facility until all demand is met asprescribed in the Single Buyer Rules.

13.2 The Single Buyer shall prepare and submit the Day Ahead Dispatch Schedule to the Grid System Operatorby 12.00 on the Working Day preceding the commencement of the Trading Day.

13.3 In preparation of the Day Ahead Dispatch Schedule, the Single Buyer shall take into account the Start-UpCosts in the Bids submitted by Expired PPA/SLA Generators and Large Merchant Generators with two-shifting Generating Facilities which are capable of starting-up from zero output and shutting down tozero output within twenty-four (24) hours (the “Fast Start Generators”) .

13.4 The Grid System Operator may provide feedback to the Single Buyer on the Day Ahead DispatchSchedule by 15.00 on the Working Day preceding the commencement of the Trading Day.

13.5 The Single Buyer shall prepare, finalise, revise and publish on the MPI the relevant sections of the DayAhead Dispatch Schedule, which shall take into account the feedback provided by the Grid SystemOperator, by 17.00 on the Working Day preceding the commencement of the Trading Day.

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13.6 On the Trading Day, the Grid System Operator will issue dispatch instructions to the NEDA Participants inaccordance with the Day Ahead Dispatch Schedule or the latest least cost dispatch schedule produced bythe Grid System Operator in accordance with Least Cost Dispatch Scheduling Methodology, taking intoaccount, and subject to:

13.6.1 real-time Grid System conditions;

13.6.2 its obligations under its Licence and the Malaysian Grid Code; and

13.6.3 the latest Bids received from NEDA Participants prior to Gate Closure and the latest Availabilitydeclared by NEDA Participants.

14. DEFAULT BID

14.1 The Default Bid for a relevant Bidding NEDA Participant shall be:

14.1.1 for PPA/SLA Generators, the Heat Rates and VOR set out in the relevant PPA/SLA as recorded inthe Registration Data;

14.1.2 for Expired PPA/SLA Generators, the Heat Rates and VOR specified in the Registration Data; and

14.1.3 for Large Merchant Generators, the default Price Quantity Pairs submitted in the RegistrationData,

as may be amended from time to time, provided such amendment has taken effect.

15. MONTHLY CAP

15.1 A Monthly Cap is the cap on the price, Heat Rate and VOR that Bidding NEDA Participants shall notexceed in the Bids and published by the Single Buyer.

15.2 Large Merchant Generators bidding Price Quantity Pairs shall not include prices in their Bids that arehigher than the Monthly Cap. Where Bids include prices that are higher than the Monthly Cap, the Bidshall be rejected via the MPI.

15.3 Expired PPA/SLA Generators shall not include Heat Rates or VOR in their Bids that are higher than theMonthly Cap. Where Bids include Heat Rates or VOR that are higher than the Monthly Cap, the Bid shallbe rejected via the MPI.

15.4 The Monthly Cap shall be published by the Single Buyer on the MPI one (1) Week prior to the start of theMonth to which the Monthly Cap relates.

15.5 The Single Buyer shall calculate the caps by identifying the most expensive PPA/SLA Generator that:

15.5.1 is available for dispatch during the relevant Month according to the Three Month Ahead LoadForecast; and

15.5.2 operates on primary fuel,

using a simple merit order stack (the “Reference Generator”).

15.6 Using the Reference Generator’s Heat Rate, VOR and fuel price, the Single Buyer shall calculate:

15.6.1 the weighted average fuel price for the previous Month ( the “Average Fuel Price”);

15.6.2 the price cap for the purposes of the Monthly Cap, which shall be the maximum of:

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(a) the Reference Generator’s Heat Rate;

(b) multiplied by the Average Fuel Price; plus

(c) the Reference Generator’s VOR.

16. SYSTEM MARGINAL PRICE

16.1 The Single Buyer shall publish the Forecast System Marginal Price, which is the price of the mostexpensive Marginal Generator included in the Day Ahead Schedule to meet the Day Ahead Load Forecastin a Half-Hour Period, based on the current draft of the Day Ahead Dispatch Schedule on the MPI by12.00 hours on the Working Day preceding the commencement of the Trading Day.

16.2 The Marginal Generator for the purposes of the calculation of the Forecast System Marginal Price andthe Actual System Marginal Price shall be:

16.2.1 a Centrally Dispatched Generating Facility;

16.2.2 not ramping up or down at the Maximum Ramp Up Rate of Generating Facility or MaximumRamp Down Rate of Generating Facility;

16.2.3 not generating at Minimum Stable Load or maximum load;

16.2.4 not a Hydro Plant;

16.2.5 not Renewable Plant;

16.2.6 not a testing unit;

16.2.7 running under normal industry conditions;

16.2.8 not a constrained generator due to transmission or fuel constraint;

16.2.9 not subject to gas curtailment; and

16.2.10 running on primary fuel (i.e. not running on back-up fuel).

16.3 Price Takers shall be paid for the energy delivered to the Grid Owner by a Generating Facility at thedelivery point as measured by approved meters ( the “Metered Output” ) at the higher of the ForecastSystem Marginal Price and the Actual System Marginal Price, which is the price of the most expensiveMarginal Generator dispatched by the Grid system Operator to meet the actual demand in a Half- HourPeriod.

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PART VI

SETTLEMENT

17. SETTLEMENT

17.1 This section on Settlement shall not apply to Settlements for PPA/SLA Generators or Part PPA/SLAGenerator in relation to their PPA/SLA contracted capacity, which shall be governed by the terms of theirrespective PPAs and SLAs, including in relation to Heat Rates and VOR that are Bid lower than thePPA/SLA Heat Rates and VOR.

17.2 The Single Buyer shall use information provided by NEDA Participants as part of Registration orcontained in Bids for Settlement. It is the responsibility of each NEDA Participant to ensure that anyinformation affecting them is accurate and to notify any identified discrepancies to the Single Buyer assoon as reasonably practicably.

17.3 Dispatched Generators shall be paid:

17.3.1 subject to the Monthly Cap, prices for Metered Output as follows for each type of NEDAParticipant:

(a) PPA/SLA Generators, at lower of the PPA/SLA Heat Rates and VOR or Heat Rates andVOR as Bid;

(b) Expired PPA/SLA Generators, the Heat Rates and VOR as Bid;

(c) Large Merchant Generators, the price determined by reference to the Price QuantityPair as Bid (“Price as Bid”); or

(d) Price Takers, the higher of the Forecast System Marginal Price and the Actual SystemMarginal Price, capped at the Registered capacity; and

17.3.2 if the relevant NEDA Participant is a Fast Start Generator and it has been issued with a dispatchinstruction by the Grid System Operator to start-up, it shall be paid:

(a) its Start-Up Costs as Bid; or

(b) in the event of a Cancelled Start Event, its Registered Start-Up Costs where it hascomplied with its obligations under section 20.

17.4 Each NEDA Participant shall send an invoice to the Single Buyer (or, in the case of Price Takers, to TNBDistribution) for amounts owed to the NEDA Participant by the Single Buyer in respect of each relevantBilling Period within seven (7) Working Days after the end of the relevant Billing Period, which shall:

17.4.1 be based on the pricing principles and formulae set out in Appendix C and the Metered Outputin each Half-Hour Period provided in clause 17.3;

17.4.2 specify the Trading Data (in a format as shall be specified by the Single Buyer from time totime) for that NEDA Participant for each relevant Trading Day,

(“Settlement Invoice”).

17.5 For the purpose invoicing under clause 17.4, Large Merchant Generators (excluding Part PPA/SLAGenerator) and Price Takers shall use the meter reading obtained from the MPI.

17.6 Subject to clause 17.8 and 17.9 and section 18, the Single Buyer (or TNB Distribution acting as the agentof the Single Buyer) shall pay the amounts owed to the NEDA Participant in relation to the Billing Period

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within thirty (30) Days of receipt of the hard copy Settlement Invoice by the Single Buyer (or, in relationto Price Takers, by TNB Distribution).

17.7 The Single Buyer (or, in relation to Price Takers, TNB Distribution) shall issue a letter to the relevantNEDA Participant for each relevant Billing Period as soon as reasonably practicable after payment of theamounts owed to the NEDA Participant in relation to the Billing Period by the Single Buyer (or TNBDistribution acting as the agent of the Single Buyer)(“Settlement Letter”). The Settlement Letter shallstate the amount assessed as payable, including where the Single Buyer (or, in relation to Price Takers,TNB Distribution) disagrees with any information specified in a Settlement Invoice, specifying theamount in dispute and the undisputed amount. For the avoidance of doubt, the amounts paid by theSingle Buyer (or, in relation to Price Takers, TNB Distribution) under this clause 17.7 shall be the amountspecified in the Settlement Invoice, unless modified by the Settlement Letter.

17.8 If any amount in a Settlement Letter is different to the Settlement Invoice, such amount shall beconsidered to be not agreed and Settlement shall be carried out according to the Single Buyer’s (or TNB’sDistribution) assessment of the amount owed in the Settlement Letter. Any dispute in relation to aSettlement Invoice shall be raised promptly by the NEDA Participant and in any event within three (3)Months of the date of the Settlement Letter and if the dispute is not raised within that time then theSettlement Letter is taken to have been agreed. Disputes shall be resolved in accordance with SingleBuyer Rules.

17.9 Interest will be charged on overdue amounts (including any amounts that are the subject of a disputeand subsequently found to be payable) on a daily basis at a default rate which is one (1) percentagepoints per annum above the base rate of Maybank. Interest accrues on a simple (and not compounded)basis and accrues daily from and including the first Working Day after the due date for payment up tobut excluding the date paid.

18. SET OFF

18.1 Where the Single Buyer (or TNB Distribution acting as agent of the Single Buyer) is under an obligationunder the Single Buyer Rules to make any payment to a NEDA Participant, the Single Buyer or TNBDistribution may (but shall not be obliged to) set off such payment against any amounts the relevantNEDA Participant owes the Single Buyer (or TNB Distribution) in pursuant to the NEDA Rules providedthat it is in accordance with and not in violation of the provisions in the PPA/SLA and any othercommercial agreements between the NEDA Participant and the Single Buyer or TNB Distribution .

18.2 The obligations of the relevant NEDA Participant in respect of any such amounts referred to in clause18.1 shall be deemed to be satisfied and discharged to the extent of any set-off in accordance with thissection 18.

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PART VII

NON-DISPATCH

19. FAILURE TO MEET DISPATCH BY GENERATOR

19.1 Where a Merchant Generator has successfully Bid into NEDA Go-Live and NEDA Trial Run but is subjectto a Failure to Meet Dispatch during a Half-Hour Period, the Grid System Operator shall issue a GSO Non-Compliance Notice to the Merchant Generator and the Single Buyer.

19.2 The Single Buyer may conduct an investigation into a Failure to Meet a Dispatch.

19.3 The Single Buyer may, following an investigation, impose such conditions as it considers appropriate inthe circumstances on continued participation in NEDA by the relevant Merchant Generator. Where theSingle Buyer determines that the Merchant Generator should make a payment to the Single Buyer, itshall notify the Merchant Generator and the Single Buyer in writing. Such payment shall not exceed RM150 (Ringgit One Hundred and Fifty Only) for each MW shortfall in its Delivery Obligation as set out inthe GSO Non-Compliance Notice. Such amount shall be set off from the next invoice from that MerchantGenerator in accordance with section 18.

20. NON-DISPATCH BY GSO

20.1 A Fast Start Generator shall be paid its Registered Start-Up Costs by the Single Buyer where:

20.1.1 the Grid System Operator has issued a dispatch instruction for the NEDA Participant to provideits Delivery Obligation; and

20.1.2 the Grid System Operator cancels such dispatch instruction after the commencement of start-up of the Generating Facility in accordance with the dispatch instruction given earlier,

(the “Cancelled Start Event”).

20.2 Following a Cancelled Start Event, the Fast Start Generator shall submit an invoice for the RegisteredStart-Up Costs incurred due to the Cancelled Start Event to the Single Buyer as part of its SettlementInvoice for that Billing Period issued in accordance with section 17 and 18.

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APPENDIX A

BIDDING AND DISPATCH SCHEDULE

Timeline of Bidding and Dispatch

Time Task

D-21000hrs

Bidding opens for NEDA Participants ( please refer to Bidding Window insection 10)

D-11000hrs

Generators with PPA/SLA submit Day Ahead Declaration.Gate Closure for NEDA Participants to submit Bids for Trading Day.Grid System Operator submits Transmission and Generation Outage Plans.Single Buyer updates Day Ahead Load Forecast.

1030hrs Nominated gas supplier submits Daily Update Gas Report.

1100hrs Single Buyer updates dispatch model for all inputs.

1200hrs Single Buyer prepares Day Ahead Dispatch Schedule and submits it to GridSystem Operator for validation.Single Buyer publishes forecasted half-hourly SMP based on current draftof the Day Ahead Dispatch Schedule.

1400hrs Participants who are price-takers submit their Planned GenerationSchedule to Single Buyer.

1500hrs Grid System Operator provides feedback on Day Ahead Dispatch Schedule.

1700hrs Single Buyer finalizes the Day Ahead Dispatch Schedule.Single Buyer sends the finalized Day Ahead Dispatch Schedule to GridSystem Operator.Single Buyer makes available to Generator the Day Ahead DispatchSchedule for each of its generation unit.Single Buyer publishes Day Ahead Load Forecast.

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APPENDIX B

KEY INFORMATION PUBLISHED BY THE SINGLE BUYER

1. KEY INFORMATION

1.1 The following information shall be published by the Single Buyer on the MPI:

1.1.1 at 12.00 hours one (1) Working Day before each Trading Day, the Forecast System MarginalPrice based on the indicative Day Ahead Dispatch Schedule;

1.1.2 at 17.00 hours one (1) Working Day before each Trading Day:

(a) the Day Ahead Load Forecast used for the Day Ahead Dispatch Schedule; and

(b) the NEDA Participant-specific Day Ahead Dispatch Schedule;

1.1.3 on the last Working Day of each Week:

(a) the Week Ahead Load Forecast for the following Week; and

(b) one (1) Week in arrears, the Actual System Marginal Price;

1.1.4 on the first Working Day of the last Week before the end of each Month, the Price/HeatRate/VOR caps for the upcoming Month; and

1.1.5 whenever required:

(a) any Generation, Grid System or Distribution System constraints; and

(b) any suspension of NEDA,

(each of 1.1.1, 1.1.2(a), 1.1.2(b), 1.1.3(a), 1.1.3(b), 1.1.4, 1.1.5(a) and 1.1.5(b) being a “Key InformationItem”).

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APPENDIX C

SETTLEMENT FORMULA

Settlement Formulas

For avoidance of doubt, all following calculation formulas shall consider the following input:

INTERMEDIATE CALCULATIONS

All intermediate calculations under this Appendix C shall be without rounding and the final product shallbe rounded to the second (2nd) decimal place and a figure of five (5) or more in the third (3rd) decimalplace shall result in a rounding up of the second (2nd) decimal.

C1. PPA/SLA holders

In accordance with the formula provided in the PPA/SLA.

C2.Expired PPA/SLA holders and Large Merchant Generators

Energy Payment

ENERGY PAYMENT EP = PB x MO

where:EP = the Energy Payment (in RM) for the Generating Facility in such Billing Period.PB = the applicable Price as Bid (in RM/kWh) as determined in accordance with Calculation

Guidelines as per the applicable Price Quantity Pair; andMO = the metered output (in kWh) delivered from the Generating Facility in such Billing Period.

Calculation GuidelinesFor the purpose of determining the Energy Payment for the Billing Period (i.e. EP), the principles outlined aboveare applied as follows:

Energy Payment for each day in a Billing Period(a) NEDA Participant shall provide TNB with a schedule, set out in a format similar to the following

table, for the Generating Facility for each day of a Billing Period.

Indexi

Period ApplicableTime

(Peak / OffPeak)

MeteredOutput (MO)

(in kWh)

ApplicableBlock

ApplicableLoad Level

(MW)

Applicable Priceas Bid, PB(RM/kWh)

EnergyPayment

EP(RM)

1 0:00 –0:30

2 0:30 –1:00

3 1:00 –1:30

4 1:30 –2:00

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48 23:30 –24:00

(b) For the Generating Facility, the Energy Payment for each Trading Day of a Billing Period isdetermined as follows:

EP(daily) =

000,000,1

MOPB48

1

i

ii

MOi = the Metered Output (in kWh) from the Generating Facility during the Half-Hour Period i;i = an index referring to each Half-Hour Period of each Trading Day of the Billing Period;PBi = the applicable Price as Bid for the Half-Hour Period i (in RM/kWh) as determined in

applicable Price Quantity Pair;

Price Quantity Pair =

Price Quantity Pair

Date Applicable Period ApplicableTime Block Load (MW) Price as Bid

(RM/kWh)

1-Aug-16 Peak /Off Peak

0800-2159hrs(Peak) /

00:00 – 07:59& 22:00 –23:59 (Off

Peak)

1 0 – 49.99 0.1232 50 – 99.99 0.1243 100 -149.99 0.1254 150 -199.99 0.1265 200 – 249.99 0.1276 250 – 299.99 0.1287 300 – 349.99 0.1298 350 – 399.99 0.1309 40 – 449.99 0.131

10 450 -500 0.132

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C3.Price Takers

Energy Payment

ENERGY PAYMENT EP = SMP x MO

where:EP = the Energy Payment (in RM) for the Generating Facility in such Billing Period;SMP = higher of the Actual System Marginal Price and Forecast System Marginal Price based on

the Day Ahead Dispatch Schedule (in RM/kWh) in such Billing Period as determined inaccordance in the Calculation Guidelines;

MO = the metered output (in kWh) delivered from the Generating Facility in such Billing Period.

Calculation GuidelinesFor the purpose of determining the Energy Payment for the Billing Period (i.e. EP), the principles outlined aboveare applied as follows:

Energy Payment for each day in a Billing Period(a) NEDA Participant shall provide TNB with a schedule, set out in a format similar to the following

table, for the Generating Facility for each day of a Billing Period.

Indexi

Period ApplicableTime

(Peak / OffPeak))

Metered Output(MO)

(in kWh)

ForecastSMP

(RM/kWh)

ActualSMP

(RM/kWh)

ApplicableSMP, Ei

(RM/kWh)

EnergyPayment

EP(RM)

1 0:00 – 0:302 0:30 – 1:003 1:00 – 1:304 1:30 – 2:00

48 23:30 –24:00

(b) For the Generating Facility, the Energy Payment for each Trading Day of a Billing Period isdetermined as follows:

EP(daily) =

000,000,1

MOSMP48

1

i

ii

(c) The terms used in this section shall have the meanings set out below in respect of the GeneratingFacility for which the fuel payment is being determined:

MOi = the Metered Output (in kWh) from the Generating Facility during the Half-Hour Period i;i = an index referring to each Half-Hour Period of each Trading Day of the Billing Period;

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SMPi = the applicable SMP for the Half-Hour Period i (in RM/kWh);SMP = higher of the Actual System Marginal Price and Forecast System Marginal Price based on

the Day Ahead Dispatch Schedule.

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APPENDIX D

REGISTRATION PROCESS

1.1 The Registration Process shall be as follows:

1.1.1 the Single Buyer shall make the Registration forms available on the MPI homepage;

1.1.2 the Applicant shall return the completed Registration forms (in hard copy and soft copy) to thepostal and electronic addresses specified by the Single Buyer from time to time, together withthe Registration Data;

1.1.3 the Single Buyer:

(a) shall verify the Registration Data requiring verification by consulting with the GridSystem Operator and other relevant parties within three (3) Months of receipt of theRegistration Data; and

(b) may choose to verify any other Registration Data provided by the Applicant to theextent it considers appropriate,

(“Verification”);

1.1.4 the Single Buyer may request that the Applicant provide any further information required bythe Single Buyer in order to progress the Verification and the Applicant shall provide suchinformation within ten (10) Working Days of such a request;

1.1.5 following Verification, the Single Buyer shall make a recommendation to the EnergyCommission (with a copy of such recommendation to the Applicant) to either:

(a) confirm the Registration Data of the Applicant (“Verification Confirmation”); or

(b) propose that the Energy Commission reject the Registration of the Applicant, statingthe reasons why such rejection is recommended (“Verification Rejection”);

1.1.6 within twenty (20) Working Days following a Verification Rejection (or such longer time periodas may be agreed by the Single Buyer), the Applicant may provide such further information tothe Single Buyer in order to allow the Single Buyer to review its Verification recommendation.The Single Buyer shall review its Verification recommendation on the basis of such newinformation as soon as reasonably practicable and in any event within three (3) Months ofreceipt of such information. The Single Buyer shall also review its Verification recommendationwhere directed to do so by the Energy Commission;

1.1.7 on receipt of a Verification Confirmation, the Energy Commission shall issue a RegistrationDecision to the Single Buyer in respect of the relevant Applicant;

1.1.8 on receipt of the Registration Decision from the Energy Commission, the Single Buyer shallwithin twenty (20) Working Days send the relevant NEDA Agreement to the Applicant forexecution;

1.1.9 the Applicant shall return the executed relevant NEDA Agreement to the Single Buyer as soonas reasonably practicable and in any event within three (3) Months and shall provide the SingleBuyer with an estimate of the date on which it will be ready to participate in NEDA, which dateshall be at least six (6) Months and not more than twelve (12) Months from the date of

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execution of the relevant NEDA Agreement (or such longer or shorter period agreed by theSingle Buyer) (“Estimated Participation Date”);

1.1.10 following receipt of the relevant NEDA Agreement duly executed by the Applicant, the SingleBuyer shall issue a notice of the date of accession of the Applicant and therefore the date onwhich the Applicant becomes a NEDA Party;

1.1.11 prior to the Estimated Participation Date, the Single Buyer shall notify the new NEDAParticipant of the commissioning and operational testing of the NEDA processes andequipment required to be carried out by the new NEDA Participant prior to that date and bothparties shall use reasonable endeavours to meet the Estimated Participation Date;

1.1.12 the Single Buyer shall issue a firm participation notice confirming the date on which thecommissioning and operational testing have been concluded and the NEDA Participant shallparticipate in Bidding pursuant to NEDA from the Bidding Window on that date (“FirmParticipation Date”); and

1.1.13 for the purposes of Applicants participating in the Trial Run, the Verification process, executionof the NEDA Agreements and the commissioning and operational testing shall run concurrentlywith the Trial Run. Except where the Applicants notify a later date, the Firm Participation Dateand date for accession to NEDA for Applicants that have successfully participated in the TrialRun and that have executed the relevant NEDA Agreement shall be the Go-Live Date.

1.1.14 For the existing PPA/SLA Generators and other NEDA Participants who are currentlyconnected and supplying energy to the Grid System or Distribution System, the GeneratingFacilities shall be deemed to have fulfilled the requirements for commissioning and operationtesting in clause 1.1.13 above and the information provided in the PPA/SLA or in the latestverification/certification tests conducted in accordance with the PPA/SLA shall be deemed tobe valid for the purpose of Registration.

1.2 The Registration Data shall comprise:

1.2.1 confirmation from the Applicant that the relevant Generating Facility has:

(a) sufficient fuel arrangements in place to enable participation in NEDA up to its fullExport Capacity, including where an Expired PPA/SLA Generator is not utilising OwnFuel that it is in receipt of Power Sector Gas;

(b) accurate metering installed and operational, and confirmed as adequate forSettlement purposes by the Single Buyer in accordance with the Metering Guidelines;

(c) an interconnection point with capacity for export onto the Grid System or DistributionSystem for its full Export Capacity;

(d) for Grid System connected Generating Facilities, submitted an endorsement from theGrid Owner that it has successfully completed a power system study and received acommissioning test certificate from the Energy Commission;

(e) for Distribution System connected Generating Facilities, submitted an endorsementfrom TNB Distribution that it has successfully completed a power system study; and

(f) no material on-going disputes and is not in default under any material agreementrequired for the ongoing operation of the Generating Facility; and

1.2.2 the technical information included in the Registration form;

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1.2.3 contact details for communication, service and notification in respect of the Applicant;

1.2.4 bank details for Settlement and other financial operations in respect of the Applicant; and

1.2.5 confirmation the Applicant has the corporate authority to bind the relevant Generating Facilityand to become a NEDA Party.

1.3 All Applicants shall bear their own cost in relation to Registration including any upgrades to their systemsor software requirements.

_______________________________

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NEDA Registration Form

All Applicants (existing and expired PPA/SLA Generators, Part-PPA/SLA Generators, Merchant Generators andPrice Taker) who wish to participate in the NEDA Trial Run in accordance with the proposed new bidding processunder New Enhanced Dispatch Arrangement (NEDA) Rules shall complete the NEDA Registration Form and submitit to Single Buyer (SB) which is representing Suruhanjaya Tenaga (ST) in the Registration Process for the purposeof NEDA including Trial Run.

The completed application form shall be returned to the following address with a scanned copy emailed to ST andSB to the corresponding address:

Single BuyerLevel 9, Menara PNS, Tower 7, Avenue 7No 8, Jalan Kerinchi59200Wilayah Persekutuan Kuala Lumpur

Email:[email protected]:www.singlebuyer.com.myPhone: (03) 2245 8000Fax: (03) 2241 1854

A scanned copy of the completed registration form shall also be emailed to ST at the following address:

Suruhanjaya TenagaEmail:[email protected]

Upon receiving a Verification Confirmation notice from SB, the data submitted during the Registration Processwill be considered as Registration Data. If there is any deviation from the Registration Data, the Applicant isrequired to immediately submit amendments to the Registration Data. Where in the opinion of the ST or SB thatthe information is insufficient, ST or SB may request additional data from the Applicant.

General guideline for completing the form:1. Please ensure that all fields under “Submitted Data” column are clearly filled.2. If the item is not relevant, please fill in the “Submitted Data” column as “Not Applicable” or “N/A”.3. Failure to comply with no. 1 and 2, the submission is considered as incomplete and may not be considered

for NEDA registration application.4. If there are any additional notes, please use the “Remarks” column. Otherwise, leave as blank.5. If in doubt, please refer to the relevant sections of the NEDA Rules, Guide on Trial Run, NEDA Registration

Process Guideline, Single Buyer Rules (SBR), Malaysian Grid Code (MGC)and Malaysia Distribution Code(MDC) for definitions of terms and further information.

6. Information in Part 3 of this document, if not available, need not be submitted for the purpose of the TrialRun. However, such information must be submitted before the NEDA “Go-Live” date.

mailto:Email:[email protected]

www.singlebuyer.com.my

mailto:Email:[email protected]

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DISCLAIMER

It is the responsibility of the Applicant to submit accurate data in relation to its Generating Facility. The Applicant also has the responsibilityof immediately notifying any changes to information submitted for Registration during the Registration Process or the Registration Dataonce it has become a NEDA Participant.

ST and SB shall not be held responsible for any consequences which arise from its actions on the basis of such information supplied by anyApplicant.

ST and SB may disclose the information submitted to the specialists, experts or consultants it may engage in the course of verificationprocess and the Applicant has no objections for such submission.

ST and SB may reasonably request additional data to represent correctly the technical parameters or other relevant information in relationto such Generating Facility.

ST and SB shall not be liable for any claims, demands, cost, actions, losses and damages suffered by any party (including the Applicant)whatsoever arising out of and in connection with NEDA including claims, demands, cost, actions, losses and damages which may arise as aresult of the ST’s and SB’s reliance on or use of the information provided by the Applicant. The Applicant agrees to indemnify ST and SBfrom and against all claims, demands, actions and proceedings brought against the ST and SB.

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Main Application Form

APPLICANT DETAILS – PLEASE PRINT CLEARLY

Company / Business Name:

Company Registration Number:Registered BusinessAddress: i)

Phone Number: Fax Number:

Email Address:

(Preferred Mailing Address, if different than above)

Other Address: ii)

Phone Number: Fax Number:

Email Address:

SITE DETAILS – PLEASE PRINT CLEARLYSite Name: iii)

Site Description:State/District/Mukim:

Registered LandOwner:

Lot Number: Map:Note: Map to be supplied by Applicant shall be in the format that complies with Grid Owner’s Corporate Geospatial InformationSystem (CGIS) (e.g. AutoCAD with Cassini Coordinates).

Please do not leave any item as an empty field. Fill in “N/A” if it is not applicable

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PART 1: General Registration Data Requirement

PART 1.1: Category Data

Registration Data Submitted Data Remarks

Registration Category (please tick ONE only)

Centrally Dispatched Generating Facility:

PPA/SLA Generator

Expired PPA/SLA Generator

Large Merchant – Co-generation Plant

Large Merchant – Franchise Utility

Large Merchant – Part PPA/SLA Generator

Large Merchant – New Build Generating Facility

Non-Centrally Dispatched Generating Facility

Price Taker – Co-generation Plant

Price Taker – Small Renewable Plant

Price Taker – Small Franchise Utility

Price Taker – New Build Generating Facility

PART 1.2: Bank Data (for payment by SB)


Bank Name

Bank’s Address

Account Number

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PART 2: Detailed Registration Data Requirement

PART 2.1: PPA/SLA Generator Data


As per PPA/SLA

PART 2.2: Expired PPA/SLA Generator Data


Facility name

Unit number

License Registration number

Date of : (dd/mm/yyyy)

Estimated Participation Date

Retirement (if applicable)

Generating Unit Type

Steam coal

Steam gas

Open cycle gas turbine

Combined cycle gas turbine

Nuclear

Others (please specify)

Fuel

Primary

Alternate

For combined cycle gas turbine, please state your plant’sconfiguration

1GT + 1ST

2GT + 1ST

3GT + 1ST

Others (please specify)

Technical Parameters tested by Independent Engineer as approved by ST

Rated/Nameplate Facility capacity (main fuel)

Max Generation Output* (MW)

Min Generation Output* (MW)

Rated/Nameplate Facility capacity (alternate fuel)

Max Generation Output* (MW)

Min Generation Output* (MW)

Technical Heat Rate* (refer to Part 2.2.1)

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Tested Date (dd/mm/yyyy)

Independent Engineer’s Name/Company

Ramp Rates of Generating Facility

Maximum Ramp Up Rate* (MW/min)

Maximum Ramp Down Rate * (MW/min)

Minimum Up Time* (hours)

Minimum Down Time* (hours)

Default Bid Data

Default Heat Rate Refer to Part 2.2.2Default Variable Operating Rate Refer to Part 2.2.2Start-up Cost (RM per start-up)

Fuel Arrangement

Gas Supply Agreement (GSA)

Effective date (dd/mm/yyyy)

End date (dd/mm/yyyy)

*Parameter tested by Independent Engineer as approved by ST

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PART 2.2.1: Technical Heat Rate (except for PPA/SLA Generators)

BandLoad(MW)

Heat Rate(kJ/kWh)

12345678910

PART 2.2.2: Default Heat Rate and VOR (except for PPA/SLA Generators)

Bidding Period : Off Peak BiddingPeriod

VOR (RM/kWh):Band Load (MW) Heat Rate

(kJ/kWh)12345678910

Bidding Period : Peak Bidding PeriodVOR (RM/kWh):

Band Load (MW)Heat Rate(kJ/kWh)

12345678910

Note: To specify Load (MW) in two (2) decimal places. Please refer to Registration Form sample in the MPI.

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PART 2.3: Large Merchant (“Cogeneration Plant” /“Franchise Utility”/“Part-PPA/SLA Generator” / “New Build Generating Facility”) Data

Description of Data Submitted Data Remarks

Facility name

Unit number

Licensing (Type and Registration Number)

Generating License

Other co-existing Licenses (if any)



Rated/Nameplate Generating Facility capacity

Max (MW)

Min (MW)

Excess capacity to be registered under NEDA (MW)

Technical Parameters tested by Independent Engineer as approved by ST

Ramp Rates of Generating Facility

Maximum Ramp Up Rate* (MW/min)

Maximum Ramp Down Rate * (MW/min)

Minimum Up Time* (hours)

Minimum Down Time* (hours)

Default Bid Data

Default Price Quantity Pair (refer to Part 2.3.1)

Start-up Cost (RM per start-up)

Fuel Arrangement

Effective date (dd/mm/yyyy)

End date (dd/mm/yyyy)

*Parameter tested by Independent Engineer as approved by ST

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PART 2.3.1: Default Price and Quantity Heat Rate (except for PPA/SLA Generators)

Bidding Period:Off Peak Bidding

Period

BandQuantity

(MW)Price

(RM/kWh)

1

2

3

4

5

6

7

8

9

10

Note: To specify Load (MW) in two (2) decimal places. Please refer to Registration Form sample in the MPI.

Bidding Period: Peak Bidding Period

BandQuantity

(MW)Price

(RM/kWh)

1

2

3

4

5

6

7

8

9

10

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PART 2.4: Price Takers (“Cogeneration Plant” / “Small Franchise Utility” /“Small Renewable Plant” / “New Build Generating Facility”) Data

Description of Data Submitted Data Remarks

Facility name



Licensing (Type and Registration Number)

Generating License

Other co-existing Licenses (if any)

Export Capacity to be registered under NEDA(MW)

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PART 3: List of Documentation

All copies must be certified true copies.

No. Item If Yes,Please tick

1 A copy of Power System Study report

2 A copy of generation License as registered with ST

3 A copy of acceptance letter from TNB Metering

4 A copy of Gas Supply Agreement (for Generating Facility under Power Sector Gas)

5 Proof of approval from TNB & PETRONAS (for Generating Facility under Power SectorGas)

6 A copy of fuel supply agreement (for own fuel)

7 A copy of test report by Independent Engineer (for technical parameters)

8 A copy of certificate of incorporation, notice of incorporation, (certificate of confirmationof incorporation issued by, the Registrar of Companies evidencing that you have been dulyincorporated under the Companies Act of Malaysia)

9 A copy of audited financial statements for the last 3 years

10 Credit support (if required)

Other additional supporting documentations (please list below):

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Declaration Form

Name: on behalf of Company:

Signature: Date:

1. I/We declare that I/we have read and understood the terms and conditions set out in the disclaimer.2. I/We declare that all information provided in this application and in documents submitted is true and

correct.3. I/We declare that I/we have obtained the corporate authority which consents to the submission of this

application for participation in NEDA and to participate in NEDA.4. I/We are not under external administration (including receivership, liquidator) or under a similar form of

administration under any laws applicable to it in any jurisdiction.5. I/We are not a party to any on-going litigation, arbitration and material disputes and the Generating

Facility is not in default under any material agreement required for the on-going operation of theGenerating Facility.

6. I/We understand that SB may check the company’s background, and I authorize SB to do so.7. I/We authorize SB(representing TNB) to collect, receive, store, transfer and use any information provided

herein, in the power purchase agreement or service level agreement (as the case may be) or anyinformation obtained in connection with this application, and to disclose such information to relevantparties for the purposes of NEDA.

8. I/We confirm that the Generating Facility has a sufficient interconnection point with capacity for exportonto the Grid System or Distribution System to enable it to participate in NEDA up to its registeredcapacity without jeopardizing the network.

9. I/We confirm that I/we have sufficient land rights and fuel in respect of the Generating Facility to allow forthe on-going operation of the Generating Facility under NEDA.

10. I/We understand that SB may reject the application if information required for a valid assessment is notavailable to SB.

11. I/We confirm that ST and SB (representing TNB) shall not be liable for any claims, demands, cost, actions,and all losses and damages suffered by us arising from or in connection with NEDA.

12. I/We undertake to indemnify and keep indemnified ST and SB (representing TNB) against any loss orliability that may be suffered by ST and SB arising from claims brought against ST and SB as a result of allour (including our agents, directors, contractors, sub-contractors, employees) actions or omissionshowsoever arising.

38

--------------------------------------------------For SB use only-----------------------------------------------------

Final Checklist

No. Item Please tick Remarks1 NEDA Registration Form is duly completed

2 Declaration Form is duly signed

3 Proof of key requirements of the following are attached:

i. Power System Study

ii. License

iii. Metering

iv. Fuel

v. Technical Parameter Test report

vi. Credit support (if required)

Other additional supporting documentations are attached (please list):

i.

ii.

iii.

iv.

v.

vi.

vii.

viii.

ix.

x.

xi.

Checked by: Date:

Verified by: Date:

39

Attachment

Summary Notes on Proposed Bidding, Scheduling, Dispatch and Settlement

Summary Notes on Proposed Bidding, Scheduling, Dispatch and Settlement.

1

Process of Trial Run

2SINGLE BUYER- a ring-fenced department pursuant to ESA 1990

During trial period

2 parallel work streams

Stream 1 Current practice: physical operations and settlement will continue to follow the existing processes and rules.

Stream 2 NEDA trial run: generators will submit bids and receive dispatch instructions but will not follow them in reality. This will have

no impact on the physical operations and settlement.

Types of NEDA participants

3

NEDA

SINGLE BUYER- a ring-fenced department pursuant to ESA 1990

PPA/SLA Generators

Merchant Generators (Non-PPA)

Expired PPA/SLA

Generators

Large Merchant Generators

- Co gen

- Franchise utility

- Part PPA/SLA

- A new build

with export capacity ≥30 MW

Price Takers- Co gen

- Small RE

- Small franchise utility

- A new build

With export capacity 100kW – 29.9MW

without PPA , NEM or FiT


How different types of NEDA participants participate

Participant types Example Bid Cap Paid at

1. PPA/SLA Generators Existing IPPs Heat rate and/or VOR

Own PPA/SLA value for heat rate & VOR

Pay as bid

2. Expired PPA/SLA Generators YTL Pasir Gudang Heat rate and/or VOR

Heat rate capVOR cap

Pay as bid

3. Large Merchant Generators

- Co gen

- Franchise utility

- Part PPA/SLA

- A new build

with export capacity ≥30 MW

PengerangPrice-quantity pair Price cap Pay as bid

4. Price Takers

- Co gen

- Small RE

- Small franchise utility

- A new build

With export capacity 100kW to 29.9MW without PPA , NEM or FiT

NURPrice taker, no price bid required (subject to appropriate metering being installed)

Higher of Forecast or Actual System marginal price (SMP)

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Timeline for generators who bid (PPA/SLA, Expired PPA & Large Merchant)


End of previous wkReceive demand profile for the upcoming week and 1 week in arrears of historical half-hourly SMP

3rd wk of previous monthReceive heat rate/VOR/price caps (Monthly Cap)

D-2 1000 hrs(gate opening)Start bidding for Day D

Day D 0000 hrsGenerate following dispatch instruction (DI)

1st wk of the following monthSubmit actual invoice to SB based on metered output

30 days after receipt of actual invoiceReceive payments from TNB

D-1 1000 hrs(gate closure)End of bidding for Day D

Bidding WindowBid revisions (price,

HR, VOR, MW) allowed

Only availability revision allowed

until DI issued

D-1 1700 hrsReceive forecast demand profile and Dispatch Schedule for Day D

Dec wk1Nov wk1Oct wk2Octwk1

Sept

Timeline for generators who bid (PPA/SLA, Expired PPA & Large Merchant)


Fri wk1 OctReceive demand profile for the upcoming week and 1 week in arrears of historical half-hourly SMP

3rd wk of SeptReceive heat rate/VOR/price caps (Monthly Cap)

Mon 1000 hrs(gate opening)Start bidding for Wed

Oct wk2 Wed, 0000 hrsGenerate following dispatch instruction (DI)

1st wk of NovSubmit actual invoice to SB based on metered output

30 days after receipt of actual invoiceReceive payments from TNB

Tue 1000 hrs(gate closure)End of bidding for Wed

Bidding WindowBid revisions (price,

HR, VOR, MW) allowed

Only availability revision allowed

until DI issued

Tue 1700 hrsReceive forecast demand profile and Dispatch Schedule for Wed

Timeline for price takers

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D-1 1200 hrsReceive half-hourly Forecast SMP for Day D

30 days after receipt of actual invoiceReceive payments from TNB (based on higher of Forecast or Actual SMP)

D-1 1400 hrsDeclare availability for Day D by this time

1st wk of following monthSubmit invoice to SB based on metered output


Day D 0000 hrsGenerate following availability

Dec wk1Nov wk1Oct wk2Oct wk1

Timeline for price takers

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Tue 1200 hrsReceive half-hourly Forecast SMP for Wed

30 days after receipt of actual invoiceReceive payments from TNB (based on higher of Forecast or Actual SMP)

Tue 1400 hrsDeclare availability for Wed by this time

1st wk of NovSubmit invoice to SB based on metered output


Oct wk2 Wed 0000 hrsGenerate following availability

Day-1 1200hrs

Day-1 1700hrs

Weekly

Every 3rd week of the month

When required

Pre-bidding information published in MPI

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•Forecast half-hourly SMP based on indicative Day Ahead Dispatch Schedule

•Forecast demand profile used for Day Ahead Dispatch Schedule

•Dispatch schedules for all generators

•Demand profile for the week ahead

•1 week in arrears of historical half-hourly SMP

•Heat rate/VOR/price caps for the following month

•Generation and transmission constraints

Plan own schedule by 1400hrs on the same

day.

To prepare plant for generation on Day D

For fuel and bid planning

To plan bids

To modify bids if affected


NEDA operations - Bidding

Gate opening & closure

• Gate opening :10 am Day-2

• Gate closure : 10 am Day-1

Bid periods

• 2 periods (peak and off-peak) comprising 10 bids each (i.e. 20 bids in total)

– Off Peak:

00.00 hrs - 07.59 hrs and

22.00 hrs - 23.59 hrs

– Peak: 08.00 hrs- 21.59 hrs.


PeakOffPeak

OffPeak

Dispatch on Gate Opening on Gate Closure on

Monday from

00.00 hours

Thursday at 10.00

hoursFriday at 9.59 hours

Tuesday from

00.00 hours

Friday at 10.00 hours Monday at 9.59

hours

Wednesday from

00.00 hours

Monday at 10.00

hoursTuesday at 9.59

hours

Thursday from

00.00 hours

Tuesday at 10.00

hoursWednesday at 9.59

hours

Friday from 00.00

hours

Wednesday at 10.00

hours Thursday at 9.59

hours

Saturday from

00.00 hours

Thursday at 10.00


Sunday from

00.00 hours

Thursday at 10.00


NEDA Operations – Submission of bid (Heat Rate and/or VOR) for PPA/SLA Generators

PPA/SLA generators can submit heat rate and/or VOR offers that are lower than their PPA/SLA rates.

- Heat rate bids submitted must follow the format of the PPA/SLA

- VOR bid: 1 bid for each period

11

10,500

11,000

11,500

12,000

12,500

13,000

300 400 500 600 700 800 900

He

at r

ate

(kJ

/kW

h)

Load (MW)

Example of PPA/SLA heat rate curve and reduced heat rate curve

PPA/SLA Heat Rate Reduced Heat Rate

NEDA Operations – Submission of Bid (Heat Rate and/or VOR) for Expired PPA/SLA Generators

Expired PPA/SLA holders bid heat rate and VOR:

• Heat rate table can contain up to 10 points

• VOR bid: 1 bid for each period

• Minimum block size is 10 MW

12

10,850

10,860

10,870

10,880

10,890

10,900

10,910

10,920

10,930

0 50 100 150 200 250 300 350 400

He

at R

ate

(kJ

/kW

h)

Generation (MW)

Bidding Period : Off Peak Bidding Period

VOR (RM/kWh): 0.11

Band Load (MW) Heat Rate

(kJ/kWh)

1 100.00 10,925.00

2 135.50 10,921.00

3 160.00 10,916.00

4 190.00 10,911.00

5 220.00 10,905.44

6 250.00 10,901.00

7 280.00 10,897.00

8 320.25 10,892.00

9 340.00 10,887.00

10 370.00 10,883.55


The last point corresponds to the maximum MW offered

The 1st point corresponds to the minimum MW offered

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0 25 50 75 100 125 150 175 200 225 250 275 300 325 350

Pri

ce (

RM

/kW

h)

Generation (MW)

NEDA operations – Submission of Bid(Price-quantity pair) for Large Merchant Generators

What are price quantity pairs?

• Price-quantity pairs (up to a maximum of 10 bids for each bidding period) are submitted by eligible Merchant Generators

• Bids are monotonically increasing (i.e. always increasing).

• Minimum block size : 10 MW


Bidding Period : Peak Bidding Period

Band Quantity

(MW)

Price

(RM/kWh)

1 100.00 0.11

2 110.00 0.14

3 131.40 0.15

4 150.00 0.20

5 200.00 0.22

6 225.65 0.25

7 240.00 0.26

8 270.00 0.27

9 285.50 0.28

10 310.00 0.30

The last point corresponds to the maximum MW offered

The 1st point corresponds to the minimum MW offered

Calculation of Monthly Cap(Price/Heat Rate/VOR Caps)

Bids by generators are subject to a cap. SB will publish the monthly caps (i.e. Price/Heat Rate/VOR caps) for the upcoming month by the third week of the previous month. There follows an illustration of how the caps are calculated.

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How to derive the Price/Heat Rate/VOR caps

1. Identify the most expensive centrally dispatched PPA/SLA thermal generator (G) on primary fuel available for dispatch, using a simple merit order stack

2. Calculate the caps as follows:

a. Calculated weighted average fuel price for the month

b. Price Cap = MAX (Heat RateG x (a) + VORG)

c. Heat Rate Cap = Heat RateG

d. VOR Cap = VORG


Calculation of System Marginal Price (SMP)• The SMP is defined as the price of the most expensive Marginal Generator

scheduled to meet demand in the half-hour period

• Price Takers will be paid the higher of Forecast and Actual SMPs capped at the registered capacity.

- Forecast SMP: based on Day-Ahead Dispatch Schedule produced at D-1 1200hr

- Actual SMP: based on Actual Dispatch by GSO


• a Centrally Dispatched Generating Facility;• not ramping up or down at the Maximum Ramp Up Rate of Generating Facility or Maximum Ramp Down

Rate of Generating Facility;• not generating at Minimum Stable Load or maximum load;• not a Hydro Plant;• not Renewable Plant; • not a testing unit;• running under normal industry conditions;• not a constrained generator due to transmission or fuel constraint;• not subject to gas curtailment; and• running on primary fuel (i.e. not running on back-up fuel).

A Marginal Generator is defined as a generator that is:

Guide to Trial Run shall have an indemnity clause in relation to usage of PPA data e.g. to calculate SMP and Monthly Cap during trial period

NEDA operations – Settlement

• Settlement for all participants is carried out monthly in arears following receipt of the participant’s actual invoice.

• If there are unresolved disputes, settlement will be carried out according to SB’s assessment of the amount payable.

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PPA/SLA holders

• Payment at the lower of PPA/SLA heat rate+VOR or bid heat rate+VOR

Expired PPA holders

• Payment at heat rate+VOR as bid

• Start up cost as bid for fast start generator

Large Merchant generator

• Payment at bid price

• Start up cost as bid for fast start generator

Price takers

• Payment at higher of Forecast or Actual SMP for the metered output


guide to trial run on proposed amendments to new enhanced dispatch arrangement · 2018. 1. 8. ·...

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